US-based major electric car manufacturer Tesla said it invested an aggregate USD 1.50bn in bitcoin (BTC) and expects "to begin accepting bitcoin as a form of payment for our products in the near future." (Updated at 13:35 UTC: updates throughout the entire text. Updated at 14:03 UTC with liquidation data, comments, and Google Trends data.)
In a filing with the US Securities and Exchange Comission, the company said that, in January 2021, it "updated investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity."
According to Tesla, they may acquire and hold digital assets from time to time or long-term.
"We believe our bitcoin holdings are highly liquid. However, digital assets may be subject to volatile market prices, which may be unfavorable at the time when we want or need to liquidate them," the company said.
As for the accounting, the car manufacturer said that the cost basis of the digital assets will not be adjusted upward for any subsequent increases in their quoted prices on the active exchanges. "Gains (if any) will not be recorded until realized upon sale," they added.
Following the news, BTC hit its new all-high, rallying above USD 43,300 (13:32 UTC). It's up by more than 10% in a day and 28% in a week.
Meanwhile, in the past hour, almost USD 228m worth of BTC short positions were liquidated, according to bybt.com data.
Last week, Tesla founder Elon Musk said that BTC is on the verge of getting a broad acceptance by the "conventional finance people."
___
___
Reactions:
I've been a #Bitcoin'er for nearly 10 years and this is one of the few times a new story actually shocked me. #Tesla
— Mandrik (@Mandrik)
Rarely one to make price predictions, but there’s a valid case for a 2X or more from here on out.
— Ma/ya Zehavi (@mayazi)
Imagine blaming Elon Musk for your own incompetence. ?\_(?)_/? https://t.co/l4JN2uQNbo
— WhalePanda (@WhalePanda)
#Bitcoin just went up $4,000 in about 15 minutes. It was worth $4,000 in total last year.
— Documenting Bitcoin ?? (@DocumentingBTC)
@gaborgurbacs seems unlikely given btc status as a commodity
— Eric/ (@wheatpond)
Tesla buying 1.5 Billion worth of #Bitcoin is the shot heard round the world for fiat currencies.
— Preston Pysh (@PrestonPysh)
as i said on Friday on @CNBC
— Meltem Demirors (@Melt_Dem)
Meanwhile in Coinbase...
— Ki Young Ju ??? (@ki_young_ju)
Only about 5,997 public companies to go in the U.S. with SEC BTC filings #bitcoin
— Alan Silbert (@alansilbert)
Can you please come up with a global carbon reduction solution that accounts for a billionaire pumping up #Bitcoin? https://t.co/ylBRuDsGLQ
— Sven Henrich (@NorthmanTrader)
___
Learn more:
1,400+ Firms Flock To Learn About Bitcoin, But 'There Is No Playbook'
Elon Musk Deconstructs Money, Prompting Bitcoiners to Ponder the Meaning
Bridgewater's Ray Dalio Sends Stronger Bitcoin Signal
Corporate Treasuries Caught Between an Inflation Rock and Bitcoin
MicroStrategy CEO On Buying Bitcoin While Trillions 'Melting' In Treasuries
Bitcoin Snowball Is Expected To Hit More Institutions in 2021
Bitcoin Wheel Cannot Be Stopped
Morgan Stanley Exec Says Bitcoin is Coming for the US Dollar
Sovereigns Will 'For Sure' Fight Against Private Crypto - Paul Tudor Jones
Bitcoiners Bristle as Musk-fuelled Dogecoin Rocket Re-enters Top 10
